Deutsche Bank Maintain Hold Rating on CBEY

In a recent report, Deutsche Bank is maintaining the Hold rating for CBeyond

after CEY 1Q11report shows the costs from new initiatives will most likely outweigh the benefits. In the report, Deutsche Bank said, "We expect ARPU pressure to persist in 1Q and throughout 2011 as CBEY's customer base shifts toward a new lower pricing structure. While we would expect some benefits to eventually come from CBEY's Ethernet initiative and cloud service company acquisitions, we expect costs associated with implementing these projects to outweigh benefits in 1H11." CBEY closed yesterday at $13.10.